(a) Council shall make available health and life insurance plans to all full-time Village employees. Full-time Village employees shall pay 3.5% of the health and life insurance premium.
(Ord. 510. Passed 5-2-68; Ord. 580. Passed 3-5-74.)
(b) Effective November 1, 2011, the provisions of subsection (a) hereof shall be applicable to the Village Fiscal Officer.
(Ord. 854-A. Passed 2-1-94; Ord. 1014. Passed 5-15-07.)
(c) Flexible Spending Account (FSA) Policy, section 125 of the Internal Revenue Code. The Village provides access to flexible spending accounts (FSA) for eligible employees.
(1) Eligibility: Regular full-time employees eligible for health care insurance.
(2) Effective date: Coverage will be effective the first of the month following the month of enrollment (e.g., enroll in the health care spending account in June, services must occur after July 1 for reimbursement.
(3) Summary of benefits: Flexible spending accounts (FSA) provide tax-free reimbursement to employees for health care and dependent care expenses that are not reimbursed by any other insurance or reimbursement program. IRS regulations require any money over the amount allowed to rollover that is not used for eligible expenses in a plan (calendar) year, be forfeited.
(4) Health flexible spending account (health FSA).
A. A health flexible spending account provides employees the opportunity to pay for medically related expenses, on a pre-tax basis, that are not reimbursed by an insurance plan. The amount you contribute and the amount you are reimbursed from your health FSA are income tax-free. The annual maximum reimbursement for health FSA is set by the IRS. The employee agrees that if the employee fails repayment for any reason, employee is terminated, resigns or otherwise ceases to be employed by the Village for any reason whatsoever, employee shall reimburse the Village for the remaining balance in connection with the health flexible spending account (health FSA).
B. Reimbursements can be made only for services that are incurred during the plan (calendar) year and during the grace period of up to three weeks of the following the expended eligible expense. For a complete list of health FSA eligible/ineligible expenses refer to IRS Publication 502 titled, "Medical and Dental Expenses, " or can be obtained from the Plan Administrator.
C. To file a claim for reimbursement from your account, complete and submit a health FSA reimbursement claim form along with an insurance explanation of benefits (EOB) or an itemized bill for services not covered by the insurance plan.
(5) Dependent care flexible spending account (dependent care FSA).
A. A dependent care flexible spending account provides employees the opportunity to pay for dependent care expenses for a child, disabled spouse or dependent parent, on a pre-tax basis. The amount you contribute and the amount you are reimbursed from your dependent care FSA are income tax-free. The annual maximum reimbursement for health FSA is set by the IRS. The employee agrees that if the employee fails repayment for any reason, employee is terminated, resigns or otherwise ceases to be employed by the Village for any reason whatsoever, employee shall reimburse the Village for the remaining balance in connection with the dependent care flexible spending account (dependent care FSA).
B. Reimbursements can be made only for services that are incurred during the plan (calendar) year and during the grace period of up to three weeks of the following the expended eligible expense. For a complete list of health FSA eligible/ineligible expenses refer to IRS Publication 503 titled, "Child and Dependent Care Expenses, " or can be obtained from the Plan Administrator.
C. A qualifying dependent is defined by the IRS; contact the Plan Administrator for details regarding a qualifying dependent.
D. To file a claim for reimbursement from your account, complete and submit a dependent care FSA reimbursement claim form along with a receipt from your day-care provider.
E. Please note that if a reimbursement request exceeds the account balance, reimbursement will only be up to the balance available in the account.
(6) Changes in FSA elections: IRS regulations require any money over the amount allowed to rollover that is not used for eligible expenses in a plan (calendar) year, be forfeited.
(7) Participation must continue unchanged until the end of the plan (calendar) year unless you have a qualifying life event (marriage, divorce, death, birth/adoption or change in employment). Contact the Plan's Administrator for further details regarding status change and applicable federal laws.
(d) Retired employees of the Village reemployed by the Village will not be provided health and life insurance.
(Ord. 2009-11. Passed 12-1-09; Ord. 2010-10. Passed 12-7-10; Ord. 2011-10. Passed 11-1-11; Res. 2020-R-05. Passed 4-7-20.)